Houston-based LBO firm makes two petrochemical acquisitions that benefit from the improvement of industry and improvement of the organization. LBOs generate a huge increase in cost, which creates problems for managers who have large, undiversified equity holdings. The company decides to sell one company in one year, and to take other public company after two. Allows students to study the causes of organizational change, the challenges of managing successful closely held company LBO, and the relative merits of different exit strategies.
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by Michael C. Jensen, Brian Barry Source: Harvard Business School 25 pages. Publication Date: October 25, 1991. Prod. #: 492021-HCB-ENG
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